A new housing scheme in Cyprus allows homeowners to create an additional dwelling to house family members. This can be done by adding a floor, extending an existing home, or building on unused space within the plot.
The buildable area of the new unit can reach 150 square metres, or up to 180 square metres on plots of at least 1,000 square metres, depending on the family’s needs.
Where the scheme applies
The scheme applies to plots where residential construction is permitted under existing development plans.
It does not apply to certain building types: listed or heritage buildings, apartments in existing multi-unit buildings, or homes that are part of existing unified housing developments. It also does not apply to certain zones: Areas of Special Character, plots outside designated development boundaries, plots in tourist zones, or environmentally sensitive areas, protected landscapes, nature protection areas and Controlled Areas under the Antiquities Law. It cannot be used to legalise unauthorised structures that already existed when the scheme was published.
An existing home qualifies under the scheme if it was legally standing when the scheme was published and holds both a town planning permit and a building permit, with any required land surrenders for roads or green space already completed.
Applying: authority, deadlines and permit validity
Applications go to the Head of the Town Planning Licensing Sector at the relevant District Local Administration Organisation, under powers set out in the Town Planning and Spatial Planning (Delegation of Powers) Order, Κ.Δ.Π. 307/2024. The scheme covers applications submitted to that authority by December 31, 2027.
Once a town planning permit is granted, applicants must submit their building permit application within a year of being notified, or the town planning permit becomes inactive.
The town planning permit itself is valid for a maximum of three years and cannot be renewed, except where construction is already under way and has reached a stage that makes the authorised development irreversible.
Parking shortfall: €2,000 buy-out option
Where it is not possible to provide the required parking spaces for the new unit, applicants can pay a commutation fee instead. That fee is set at €2,000, or lower if specified in a relevant Order by the Interior Minister.
Selling or passing on the new home
The town planning permit will include a condition registering a restrictive covenant on the property’s title deed, barring the sale or transfer of the new home for ten years except through inheritance. Within that period, the new home can only pass to the applicant’s children through inheritance.
Using this scheme alongside a previous one
Homeowners who have already benefited from another incentive scheme can still use the new housing scheme, as long as that earlier scheme did not involve an additional building coefficient.
Co-ownership cases
In cases of co-ownership, the scheme can be used without a co-owner’s signature under the provisions of Article 90 of the Town Planning and Spatial Planning Law, with the application allowed to proceed subject to the consent of the Director of Town Planning.
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